Global Harmonic filter Market Report, published by Variant Market Research, forecast that the global market is expected to reach $1,212 million by 2024 from $733 million in 2016, growing at a CAGR of 6.5% from 2016 to 2024. By geography, Asia-pacific and Rest of the world are expected to grow at a CAGR of 7.1% and 6.7%, respectively, during the forecast period.

Increased adoption of variable frequency drives and growth of power sector are the major factors driving the global harmonic filter market. Moreover, rise in demand for power quality in various industries such as, IT, medical, railways, aircraft, automobile and others has also propelled the growth of the market. However, high cost of harmonic filter coupled with availability of substitutes in the market would restrain the market growth in the coming years. Escalating demand from IT and data centers, would provide several growth opportunities for the market in the coming years.

The global harmonic filter market has been segmented on the basis of type, voltage level, and end user. By type, the market is segmented into active harmonic filters and passive harmonic filters. The passive harmonic filter segment is sub segmented into tuned passive harmonic filters and de-tuned passive harmonic filters. By voltage level, the market is further divided into low voltage harmonic filters, medium voltage harmonic filters and high voltage harmonic filters. By end user, the market is classified into industrial, IT & data centers, automotive, oil & gas, and others. Geographically, the market is categorised into North America, Europe, Asia-Pacific and Rest of the World (RoW).

By type, passive harmonic filters accounted for more than two third of the total market revenue in 2016, driven by its low cost in comparison to active filters. By end user, the industrial segment accounted for around one-third of the total market share in 2016, owing to increased demand from manufacturing industry, pulp & paper industry and metal processing industry. Low voltage harmonic filter segment was the largest revenue generating segment in 2016, by voltage level.

Asia-Pacific accounted for the largest market share of 37.8% in 2016, owing to economical development in countries such as China, Japan, and India which have increased the demand from various industries such as automotive, IT and oil & gas industries. Europe accounted for the second largest market share of 27.2%, driven by stringent regulations regarding energy consumption in countries such as Germany, France and UK. In terms of growth, Asia-Pacific is to attain the fastest CAGR of 7% during the forecast period 2016-2022, propelled by increased demand for harmonic filters from developing economies such as China, to ensure improved power quality.